Pub. 16 2017-2018 Issue 4

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S 11 new jersey auto retailer W W W . N J C A R . O R G NADA fought to preserve LIFO, which many dealerships have utilized for decades. Despite numerous threats to repeal LIFO, this accounting method ultimately was not changed in the bill. dealerships have utilized for decades. Despite numerous threats to repeal LIFO, this accounting method ultimately was not changed in the bill. • Significant estate tax reform. NADA has long fought to reform the "death tax" because of its extremely adverse effect on family-owned dealerships. H.R. 1 doubles the estate, gift and generation-skipping transfer tax exemptions from $5.6 million to $11.2 million per individual—or $22.4 million per couple—effective January 1, 2018, until December 31, 2025. • Defeating the border adjustment tax (BAT). The BAT could have raised prices on every vehicle by as much as 20 percent. NADAopposed this new tax, and it was not included in the bill. • Retaining advertising deductibility. Limiting the deduct- ibility of advertising expenses would have been an admin- istrative nightmare for most dealers and could have raised dealers' taxes. NADA opposed this provision, which was not included in the bill. Grassroots Efforts I would like to thank all New Jersey dealers who have been engaged and active for the past year. Thanks to your emails, phone calls and Congressional dealership visits, we’ve helped inform our elected officials on policy-making that either makes or breaks our business. In the latest tax bill negotiations, NADA has helped preserve 100 percent deductibility of floorplan interest. We’ve gotten ahead of autonomous vehicle legislation that could harmfully impact our franchise laws, and we’ve preserved our valuable franchise system time and time again. Finally, 2018 is an election year and I encourage everyone to host your elected official—either in district offices or at your dealer- ship—to discuss NADA’s legislative priorities. These efforts rein- force our work on Capitol Hill. I look forward to working with you and shaping another successful year in our great industry!